Thursday, September 18, 2014

Life revolves on
plastic money and credit….. people purchase things online and in the shops
using Credit cards and walk with pride into ATMs withdrawing money so
frequently. The cards gives
flexible access to money…….there can be some trouble too….

There have been rare
occasions on upon inserting the card on the slot and tapping the pin, money
does not come out – but the account gets debited ! – or the machine takes back
the cash, when the user is engrossed in mobile (currency retraction does not happen
now though !) – there have been rarer cases of ATM dispensing more than what
was sought to be drawn and debited. Just
like any other machine, ATMs too are prone to mistakes ~ and when that happens,
it can cost one time and money.

The banking
instructions would say that ‘always get
a printed receipt’ for it contains
important information such as the transaction date and time and the machine
identifier; however at the time of withdrawal
ATM would ask – whether you want a printed receipt of this transaction,
- most of us would click ‘No’ – or would not bother to keep the receipt !

Today people of Scotland are voting on whether the country
should stay in the UK or become an independent nation. Voters will answer
"Yes" or "No" to the referendum question: "Should
Scotland be an independent country?" ………… and did you imagine that it can have a
great impact on bank, ATMs and cash flow ……….. read this report in Daily Mail.

Banks have been
transferring millions of banknotes from England into Scotland ahead of
referendum amidst fears high demand on cash machines if the country votes for
independence. It is still not clear what currency would be used in an
independent Scotland, meaning that some Scots could rush to withdraw as many
pounds as possible in the event of a Yes vote. In anticipation of the poll,
extra supplies of cash have been moved north of the border to reassure Scottish
account-holders that they will have access to their money, according to
reports.

Alex Salmond is keen
to set up a formal currency union between an independent Scotland and the rest
of the UK, with the pound backed by the Bank of England as it is now. But
Westminster politicians have rejected this ambition, insisting that if Scotland
used the pound it would have to be on an informal basis, without a central bank
guaranteeing the country's debts. This might lead to an independent Scotland
setting up its own separate currency - leaving Scottish people's savings at
risk of being devalued if the country runs into economic trouble.

As race goes down to
the wire Cameron insists he has no regrets over handling of independence
debate... but will now stay in England until after the referendum. The last-minute bribes are being offered to stay in the UK. Another insider told the Daily Telegraph: 'It
is prudent for banks to stock up on demand. This happens normally in the run-up
to Christmas, and in that sense the referendum is no different.' Banknotes are printed by the Bank of England,
but their distribution is controlled by a small group of institutions including
the Post Office, Barclays, HSBC and the Royal Bank of Scotland. They have been
delivering huge quantities of cash to banks in Scotland so they can stock up at
branches and cash machines. However, the Bank of England would stand behind the
pound in Scotland as well as the rest of the UK at least until March 2016, when
the country is set to split in the event of a Yes vote.

In another attempt to
reassure banking customers, financial institutions such as the Royal Bank of
Scotland and Lloyds have promised to move their headquarters to London if
Scotland becomes independent, so they can enjoy the support of the UK
Government. Another potential danger for Scotland's economy comes from Alex
Salmond's threat to default on the country's share of UK Government debt if
Westminster refuses to enter a currency union. The National Institute of
Economic and Social Research said that such a move would shut off Scotland from
international markets, forcing the Government to balance its budget
immediately. Mark Carney, governor of the Bank of England, has predicted that
Scotland would need to build up billions of pounds of capital reserves to
guarantee the national debt if it is not in control of its own currency.

So a birth of a Nation
is certain to have labour pangs, even when things are peaceful and through a
referendum – whether it happens will be known all too shortly.